te (Social Security viedica With aing!
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter14: Planning For Retirement
Section: Chapter Questions
Problem 4FPE
Related questions
Question
![QUESTION 8
FICA Rate (Social Security + Medicare Withholding)
7.65%
(6.2% + 1.45%)
7.65%
(6.2% + 1.45%)
Employee
Employer
15.3%
Self-Employed
(12.4% + 2.9%)
Note: For employed wage earners, their Social Security portion is 6.2% on
earnings up to the taxable maximum. Their Medicare portion is 1.45% on all
earnings.
Based on the above schedule, if Rosa owns a small hair salon, what is her FICA rate?
O 7.65%
O Her rate is dependent upon her taxable income bracket
O 15.3%
O 6.2%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d1172b0-f995-498e-8ccc-349d8eccb717%2Fe73c6e04-a136-4362-a419-9c8f4571723b%2Fjzc5g36_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 8
FICA Rate (Social Security + Medicare Withholding)
7.65%
(6.2% + 1.45%)
7.65%
(6.2% + 1.45%)
Employee
Employer
15.3%
Self-Employed
(12.4% + 2.9%)
Note: For employed wage earners, their Social Security portion is 6.2% on
earnings up to the taxable maximum. Their Medicare portion is 1.45% on all
earnings.
Based on the above schedule, if Rosa owns a small hair salon, what is her FICA rate?
O 7.65%
O Her rate is dependent upon her taxable income bracket
O 15.3%
O 6.2%
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